How can Chinese bitcoin mining change in the dominance of the United States

The latest Cambridge report confirms that the United States is now leading global bitcoin mining, prompting questions about how China responds. Although the country has long occupied an anti -profit stance, Chinese mining communities historically controlled a large part of the global bitcoin.

The current competitive edge of the United States and the renewed hostility of China’s commercial policy may re -summarize. Beincrypto spoke with representatives from the currency office and Wanchain to understand what may encourage China to change its position towards digital assets.

The United States surpasses China as the Supreme Bitcoin Mining Party

The United States has firmly established as the largest mining center in Bitcoin in the world. A recent report by the Cambridge Center for Alternative Finance (CCAF) revealed this The United States represents 75.4 % of the amount of retail.

This latest development confirms a remarkable reflection of power Bitcoin mining dominance. China has emerged as a nation -minute mining in the world early in 2017, as it benefited from the extensive mining infrastructure and a decrease in electricity costs to contribute by 75 % of the global retail rate at one point.

However, the country will later be polarized on the industry.

China’s encryption campaign

In 2019, the National Development and Reform Committee of China (NDRC) indicated The intention of banning the coded currency mining By launching a draft law classified as “unwanted industry.”

Two years later, at least four Chinese provinces began to close mining operations. This campaign intensified amid concerns about Excessive energy consumption.

Near the end of 2021, the government Advertise all illegal encryption transactionsIncreasing the consolidation of the ban and the prohibition of external exchanges from serving Chinese citizens.

However, China has an attached ability to adapt to geopolitical transformations that can endanger its economic dominance, and the current environment may represent such a challenge.

Do bitcoin mining in China really stop?

Even with China’s official position on encryption, mining activity within the region has not stopped. In July 2024, Daniel Patten, an environmental influence analyst for Bitcoin, reported that retail inside China is currently about 15 % of the global total.

“Despite the official ban, the infrastructure is already present: from mining abroad to trade centers across the border. With more global momentum behind the adoption of encryption and the United States, China may find itself improved to adapt more strategic, even if it is informal,”

China also has a geographical advantage over the United States, especially with regard to technological progress.

Exaggeration of encryption, especially for Proof of encrypted work Like Bitcoin, it depends on the integrated circuit equipment of the application (ASIC) to deal with the complex accounts needed to verify health and mining.

China’s position as The most prominent source of encryption mining devicesEspecially for the United States, it gives it a possible advantage if it decides to revive the mining sector.

the It reveals the tariff conflict between the two countries It adds a layer of uncertainty to the long -term cost efficiency of American mining operations.

Puckrin believes that the combination of commercial friction and the push of the United States for the dominance of encryption may be sufficient to make China reconsider its position.

“China is unlikely to make a public role in banning encryption and trade mining any time soon. However, miners in the United States may represent higher and higher levels of bitcoin, it is imperative that China will be alert and may reorganize its position calmly.”

However, China has strategies that go beyond the restart of the bitcoin mining industry to undermine the dominance of the United States.

China’s precise approach to the American influence

Although China is opposed to the wide use of exposed currencies locally, it may still see value in the budget’s digital assets The dominance of the global currency of the US dollar.

Many countries have adopted all over the world or are considering the Central Bank of the Digital Bank (CBDCS) to enhance their local currencies. China is at the forefront of these developments.

“Despite the ban on bitcoin mining, China has actively participated in the space of digital assets, through initiatives such as CDBC Research, Digital Yuan, or E-CNY,” Timogen Lowe, CEO of Wanchain told Beinincrypto.

In fact, China’s efforts to create a digital yuan are partially driven by its desire to cancel its economy and reduce its dependence on the US dollar.

Louis also suggested that whatever the step made by China, it will not only build its decision on what the United States does or not doing.

“As always, with China, the exact approach is the best. Any policy shifts will not be due to the American customs tariff. Instead, China’s decisions will be informed of the global market trends and local strategy in China,” Louis added.

However, China’s decisions related to digital currency, in turn, will affect how to develop its location in encryption.

“The weakening of the domination of the dollar, whether it is an exacerbation or caused President Trump’s approach to definitions, may encourage China to be more aggressive in [its]The efforts made to internationalize the yuan, including digital, or electronic yuan [its] He concluded the situation towards encryption.

China’s activity in other areas of international trade is already proven how its policy changes tend.

Can conflicting encryption policies in China indicate a change?

Aside from its appreciation of digital currencies such as electronic, China’s position on encryption has already proven somewhat contradictory. These contradictions may feed the belief that the country may be ready to return – or at least soften – the full ban on mining.

A month ago, the VANECK investment company confirmed that China and Russia – the countries represented by the US sanctions in particular – have settled some of its capacity with Bitcoin.

“With the increasingly use of the US dollar as a political lever – especially in well -known economies – other countries explore active alternatives. In fact, there are many countries around the world, including China and Russia, Using bitcoin as a substitute for trading In goods and energy, for example. This trend will only accelerate as digital assets become a more prominent part of the global economy. “

According to PuckRin’s analysis of these indicators, “Shadow Crypto Economy” is expected to expand in China this year, which may lead to reaffirming its strength. This recovery will be in the first place In response to the efforts to cancel the vanishingInstead of a reaction to the US domination of mining.

He concluded by saying: “It is possible that we will see this activity heading in the near future, especially since more countries use encryption to overcome the systems dominated by the dollar.”

It will remain important in the place of interpretation of China’s intentions, especially with regard to the encrypted currency, by monitoring its actions instead of relying on its official data only.